You knew about the massive
overhaul of China's telecom sector. But the Chinese government has also been training its steely gaze on the steel industry.
On Monday China, the world's No. 1 steel producer,
combined two of its steel companies to form the fifth-biggest steelmaker in the world. State-owned Hebei Iron and Steel Group Co. replaces Baosteel Group Co. as China's biggest steel company according to a published report. The report says the government is trying to promote efficiency through consolidation and hopes bigger producers can strike better deals with foreign iron ore suppliers at a time of record prices.
Meanwhile, Baosteel Group on Saturday opened a 35.86 billion yuan
($5.2 billion) joint venture with smaller rivals in the southern province of Guangdong, reports xinhuanet.com. In related news on Monday, Baosteel agreed to a
96.5% price hike for lump iron ore exported by Rio Tinto plc. That deal was accepted by the China Iron and Steel Association, which also
voiced concern over BHP Billiton Ltd. trying to create an iron ore price index.
Deals continue. As CD previously reported -- with iron ore prices up nearly 70% this year -- Jiangsu Shagang Group Co., China's biggest privately owned steelmaker, is seeking to
buy a stake in Brazil's Cia. Siderurgica Nacional SA's iron ore unit.
The world's No. 1 steel company, ArcelorMittal, is also fortifying its vertical supply chain with acquisitions in Latin America, and everywhere else for that matter. Over the weekend it formed a
$729 million automobile steel JV with two Chinese companies. -
Baz HiralalChina combines 2 steel makers as demand surges
Baosteel, rivals open $5.2B joint venture in south ChinaMerrill Lynch says Japan may reject Chinese iron ore price dealArcelorMittal wheeling and dealing, may battle for Rio Tinto
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